Multifamily garden, mid-rise and high-rise rental apartment
properties; general property quality above "C+" in garden properties
and "B" in mid-rise and high-rise properties are preferred. Mobile
home parks should have a three star rating or better. All units
should be skirted with underpinnings and amenities including a
recreation area, pool and clubhouse.

Office buildings: Multi-tenant garden, low-rise, mid-rise, and
high-rise properties (suburban and urban); single-user and owner-occupied
properties will be considered on a case-by-case basis; general
property quality above "C+" in garden and low-rise properties
and "B" in mid-and high-rise properties is preferred.

Industrial:

Multi-tenant bulk distribution warehouse, light industrial,
and office/showroom/service center properties; single-user and
owner-occupied properties will be considered on a case-by-case
basis; general property quality above "C+" is preferred.

Interest Rate:

Fixed at the then current
Treasury bond yield of similar maturity plus a margin to be determined
according to market conditions and the characteristics of any given
prospective loan.

Loan Size:

$500,000 to $3 million
typically.

Loan Term:

10 year balloons, with other maturities
considered on a case-by-case basis.

Loan Amortization:

25 years (up to 30 years
in some cases with post- 1980 properties).

Loan Term:

Coterminous with the maturity
of the first lien financing. Due on sale or on pay off of the first
lien financing..

Debt Service Coverage
Ratio:

Minimum 1.25x

Loan-to-Value-Ratio:

75% of appraised value
(up to 80% in some cases of multifamily properties).

Prepayment:

Prohibited for the first
four (4) years. Thereafter, prepayment in full subject to the prepayment
premium equal to Lender's standard yield maintenance formula. The
loan will be open to prepayment, in full only, during last three (3)
months of the loan term, and no prepayment penalty will be charged.

Borrower will contribute monthly to
an escrow account for real estate taxes and property insurance.

Apartments:

The Borrower will also establish a monthly
capital replacement escrow reserve equal to the great of i) $250 per
unit per year for apartments; $50 per pad for mobile home parks or
ii) an amount determined by lender on the basis of the results of
a property condition report.

Retail-Office-Industrial:

An analysis must be performed that is
designed to anticipate cash flow shortfalls based on leases in place
at any given time during the term of the loan plus two years. A lease
rollover reserve to offset any expected cash shortfall(s) will be
calculated and established based on market conditions, typically using
the following assumptions:

Retail:

Tenant improvements at $5.00/$2.50 for
new leases/renewals, leasing commissions at 5%/2%, tenant retention
rate at 60-65% on multiple tenants, and time required to release at
6-12 months; and average rental rate and lease term based on the current
rent roll.

Office:

Tenant improvements at $7.00/$3.00 for
new leases/renewals (depending on amount of office finish), leasing
commissions at 5%/2%, tenant retention rate at 60-65% on multiple
tenants, and time required to re-lease at 6-12 months; and average
rental rate and lease term based on the current roll rent.

Industrial:

Tenant improvements at $2.50/$1.00 for
new leases/renewals (depending on amount of office finish), leasing
commissions at 5%/2%, tenant retention rate at 60-65% on multiple
tenants, and time required to re-lease at 6-12 months; and average
rental rate and lease term based on the current rent roll.